Taranaki's Treasure

Taranaki Daily News, Volume LV, Issue 55, 23 July 1912, Page 5

Taranaki's Treasure

IDLE WEALTH & IMPOTENT CAPITAL. A TALE OF ALLEGED BALKED ENDEAVOR. WHO IS TO BLAME? (Wellington Times' Special Correspondent.) London, July 13. A few days ago the writer stumbled on an allusion to Taranaki iron sand. It was interesting in the first instance with no data to go upon. When that was available it grew more and more so. A mention of "enormous potentialities" being "deliberately neglected," of "a giant industry" ibeing "wilfully kept back," one felt justified in probing the matter to its centre—and found it, a man, Mr. T. Donne, of 30 Holborn Viaduct.

Mr. Donne, one found, is not only a man of very considerable wealth, but he is prepared to expend a very great proportion of capital in New Zealand—in Taranaki and in Taranaki iron sand. He lias already shown signs of this, though the general public does not know it.

He is a business -man, and, apart from his personal interest in (he matter, is prepared to back up his conviction of the enormous possibilities of the Taranaki iron deposits by developing them on a scale never before attempted. All adult New Zealanders, blessed or unblessed with technical knowledge, have heard much for and against the promises hid in this unique. New Zealand depositparticularly have they heard much about its shortcomings in lending itself to practical manufacture. Other capitalists have come forward in the past, also. Whether they have been prepared to support their theories as generously, and whether they have had quite such good expert advice behind them'as appears to exist in this present case, is another question. Assuredly they have never before been possessors of the secret method which, at last, 'has conquered the obstinacy of the sand and turned it into an eminently Workable and eminently profitable commodity.

Here is the skeleton history that on to the clues an inquisitive New Zea> lander followed up, and now has permission to publish. Questioning Mr. Donne as to his personal and impersonal (for that exists strongly) interest in the development of the Dominion:—

"I have at least two good reasons," he replied. "I spent several years 'down under,' and I have the very greatest faith in its future."

As regards the particular problem of the Taranaki iron deposits?" "My interest was aroused three and a half years was in 1908—when, in conversation with my consulting engineer, I asked his opinion as to the possibility of- utilising the undoubtedly enormous wealth lying on the Taranaki beach. His report was that many eminent metallurgists had tried smelting by every known method, but that the only material produced 'had been at a pro. hibitive cost, so that all schemes had eventually to- be abandoned. ''Nevertheless, I found he himself was .convinced that the problem was well within the bounds* of 'practical metallurgy, and not impossible of solution. "On his report, knowing him to be a recognised authority upon the treatment of refractory and complex ores, I first : began.t<y,«ssume a practical interest. - "I authorised him to got into touch with the Government and to secure all possible information as to the necessary lands and leases. s ''ln the meantime we sent to Taranaki .for a bulk sample of the sand.

"On March 10. 190!), a letter was sent to the Minister for Lands, ami from another'source twenty tons'of sand iva.s ordered to be sent to England at the earliest- possible moment. THE INITIAL MYSTERY. "At this juncture the first mysterious events occurred. The letter never reached the Minister (the later'explanation of this was that the Government Was changing offices and Ministers just about that time, and the letter was possibly mislaid}, and. although the sand was bagged and left- Taranaki, it never reached us.

"However wc had, through a Xew Zealand firm, ordered another twenty tons, and this in due course reached the special works we had established for the purpose of making these experiments." "What were your experiences in carrying out these preliminary experiments?" "Almost endless difficulties presented themselves. We found that the presence of titanic acid rendered all usual experimental methods absolutely useless, and it was only >by abandoning all known methods and striking out on a new line altogether that we ultimately achieved the success we have. During the course of these laboratory-trials we many times seemed bordering upon success, but were met with disappointment time after time when it came to the final trial. In consequence of these oft recurring rebuffs we several times considered the advisability of throwing the whole thing up. "After all the laboratory labors had been concluded we decided to erect the plant requisite for our purpose, to enable us to deal with quantities of metal up to 15cwt or a ton. "This we did, and in .Tune. 190 D, we had the satisfaction of knowing that the problem of manufacturing iron from Taranaki sand was solved, and for the first time at a price that would render the scheme a commercial success."

Thus far it was quite possible even toy the New Zeal an tier unversed in technicalities to follow.

"That was exactly three years ago," the interviewer observed. "Why nothing further to report?'' "Because, from that day to this," was the astonishing reply, "it has been made impossible to make any definite move! "On November 25, 11109, having, as I said, received 110 answer from Mie Minister of Lands, a letter was sent to the chairman of the New Plymouth Harbor Board, fn this our claims were fully set out. We asked a series of definite questions, and expressed our willingness to pay for a short term option.

"Not until March '2lst. l'llO. was (lie letter even acknowledged! And then I received a reply stating Hint- an apology was due for the delay (in answering my letter of November 2."> th) 'which has been quite unavoidable.' "This, an important business application, had been calmly shelved for three months. Whv'l THE MYSTERY TTTTCKENP. "Nevertheless a very significAt thing had taken place. Two gentlemen left New Zealand and travelled through America and England, seeking in every possible way to induce capitalists to put up money for experimental works at Taranaki!

j "I'hey failed, and after hawking the j proposition about in every conceivable direction, they approached my engineer with a view of securing his knowledge. This .also failed, and they returned to New Zealand, but still we were as handicapped as they, though for very different reasons.

"It would probably be of little interest," Mr. Donne suggested, "were I to show you the voluminous correspondence that I have addressed to the secretary of the New Plymouth Harbor Board, but to all of which I have received the most evasive and unsatisfactory replies. From time to time I have been informed thiat the 'board' hoped to be able to deal with the leases at a certain time; when these times arrive I find, from other sources of information, that some extension has been granted to the men who are holding up these leases. "Now, what the object of all this dillydallying, this exceedingly unbusinesslike way of doing business and—from a public point of view—this strangely unpatriotic attitude with regard to an industry that they will know (otherwise why all this under-handedness, approaches to my engineer and frantic efforts to block me at a great loss to themselves?) will immediately open up immense possibilities of new trade in New Zealand?"

''Of this last," I asked, "you are convinced from every practical standpoint—scientific and financial?"

"As convinced as I have ever been about any undertaking I've been concerned in, and those are not a few. 'J here is not the slightest doubt that at last we have solved tile hitherto insuperable difficulties in the way of utilising this sand to any valuable extent. "If this were a small private matter, a question of some private property that, worked or unworked, would not greatly-, concern the general public, the methods that have been resorted to would be lamentable enough. But it is a grave public concern, and just so long as the present state of things is allowed"to continue (and I cannot quite be expected to indefinitely offer money to finance the scheme, I think) so long is New Zealand, as a country, being cheated of enormous wealth which belongs to her and could be made infinitely greater. "It has been proved that the inauguration of the iron industry is the forerunner and parent of all other manufacturing _ industries, and yet Taranaki is j lj'ing idle. New Zealand is ■ importing i iron and steel to the value of millions of pounds; and we, the only men who have ever had a proved process of treatment; the only men who have ever advanced a business proposition and the only ones who have been ready to make an immediate arrangement whereby the New Plymouth Board would derive a revenue, are humbugged about like 'lute-flying' option seekers.

"The whole of the correspondence, I may say, was placed before the Minister for Lands. His reply was sympathetic, but 'he regretted his inability to be of any service.'

"You can understand that mv patience was rapidly becoming exhausted. In January, 1011. I instructed a well-known firm of Christchurch solicitors; gave them a full power of attorney to act for me and close the business. They personally visited Taranaki, were given all sorts of assurances on my behalf, and understood I was to. have my turn at an early date.

"These assurances .have all gone by the board. Apparently my turn is never to come. New Plymouth will not draw revenue from the development of Taranaki, and New Zealand will go on importing every ton of iron and steel she requires to the permanent detriment of her people. "One advance has been made to us by the New Plymouth authorities—this, apparently business-like, but as underhand as the rest. They decided to offer portions of the sand-bearing lands for competition, but the portions offered were small and of little or 110 value, and one <wonders what the object was. "It is a well-known fact that in all mineral deposits the richness is located ; in one spot, and that the 'value, in mining phraseology, gradually peters out[until the edge of the deport merges into '.the ordinary earthy formation." : "Your own surmise as to this offer ( was?"l demanded.

TARANAKI'S PROOF OF WEALTH. Could it have been that anyone starting works on these small properties would-soon exhaust their supply of sand, that the process of treatment would have been then public" property, and that, those holding the main lease would then have learned how to deal with their own enormous deposit?" "Would you consider the quantity of sand available sufficient justification for the expenditure of the necessary larce sum money?" . / e : , ?■' vei 7 low fstimate," was the emphatic reply, "there is sixty million tons of sand available on Tarariaki beach at the present moment. This, taken at the bed-rock estimate of fifty per cent metallic iron, means tliirtv million tons of» manufactured iron, and the average selling price of this materiel can safely be taken as in excess of £7 per ton. A simple problem in arithmetic shows the potential value of the deposits, and is m my opinion, ample justification for the expenditure of any necessary moneys."

"With regard to the probable life of tiie present deposits?" I asked. "That depends entirely on the consumption of manufactured material, but the present supply would be .sufficient to fill all requirements ''' for hundreds of years. And we are firmly convinced that., beneficent nature would replace from the depths of the ocean whatever quantities we use from , the surface of the beach. The engineer employed by me has proved tlmWilis deposit extends great distances out into the ocean." "Exactly what, may one ask, do you intend to do when the necessary lease is granted you ?" A; guarded note here, as one have anticipated, colored Mr. Donne's reply. WHAT DEVELOPMENT WOULD MEAN.

"Assuming that the leases were in our possession to-morrow, we should immediately proceed to New Zealand, erect the< necessary furnaces, designed with an initial capacity of 500 tons of pig-iron per.; week. We should then proceed with other furnaces for the conversion of this pig-iron into malleable, iron and steel. Next we should lay down a rolling mill capable of turning out every conceivable constructional section, including railway iron, an,d rolled II girders, and also a mill'for boiler, and shipbuilding plates. AndMier section of the works would be devoted t# an iron and steel foundry'capable of turning out the largest castings that the Dominion could demand. All sorts of minor details of t'he ironmaster's business would be attended in other departments of the works, but this will giWytth in outline our proposed scheme. "Do the residents of New Zealand, do yon think," Mr. Donne asked, "realise the innumerable benefits that would to New Zealand in the event of these works being established? We should ourselves employ at least two thousand men. These two thousand men with their wives and families represent an additional population of at least ton thousand souls. The support of these must of necessity react to the benefit of every other trade. Do they realise that if their iron and steel is made locally their wants can be supplied from day to day and not, as is now the case, ordered from some other country and paid for when they leave the country, whicli is months before they

can be utilised in New Zealand, representing a serious loss of interest on invested capital during the period of the voyage?" That is the question, evidently. Do they realise it? , Your correspondent shook hands with Mr. Donne, and retired to think. And thinking in a nutshell was interesting, too. Can it be true that, as Mr. Donne avers, gigantic wealth in trade and. mon#y it •being deliberately crippled, and, worse than that if possible, that a small : body of men are obtaining concession after concession when it is understood they admit their inability to work the sands ? Here in England is a man—not at all the sort of individual to embark on anything hare-brained, but one who knows New Zealand well—who declares that he is prepared, instantly, to put down the money to start operations; to give every possible chance to this industry to develop and expand as he is convinced it will, but who alleges that he is bein» hopelessly blocked by men who are showing they consider a few individual interests of more vital importance ' than the welfare of the community at large. We were unable to interview the chairman of the Harbor Board last evening . regarding the above serious reflections. Until the official side is heard, judgment on the subject might well be suspended.